Figure 2.1 Every Second Semester, the School of Business at a Large

question 40

Multiple Choice

Figure 2.1
Every second semester, the School of Business at a large university coordinates with local business leaders at a luncheon for graduating students, their families, and friends. Corporate sponsorship pays for the lunches of each of the graduating students, but students have to purchase tickets to cover the cost of lunches served to guests they bring with them. The following histogram represents the attendance at the luncheon, where X is the number of guests each graduating student invited to the luncheon and f is the number of graduating students in each category.
-Referring to the histogram from Figure 2.1,if all the tickets purchased were used,how many guests attended the luncheon?

• A) 275
• B) 4
• C) 152
• D) 388

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Definitions:

December

The twelfth and final month of the year in the Gregorian calendar, often associated with end-of-year activities and holidays.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested in the business or used to pay off debt.

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, highlighting the impact of fixed costs.